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Amendment to Pennsylvania Construction Act to Take Effect in October

Only a few weeks remain until Pennsylvania's Contractor and Subcontractor Payment Act (CASPA) changes, shaking up the future of timeliness for construction payments. The new act will affect construction contracts entered into, on or after Oct. 10, 2018.


In Pennsylvania, CASPA affects downstream payments on private construction projects. The amendment to the act will give contractors, subcontractors or suppliers more rounded protections to better ensure prompt payments for completed work.


While the amendment will continue to see growth and development, for now, it will contain four additions: the amount the owner withholds must be "reasonable," meaning a complete invoice cannot be withheld for a single faulty item; a notice of deficiency must include a written explanation; the time to provide the required written notice will be extended from seven to 14 days; and the amendment will enact strict penalties on upstream entities that do not provide written notice within 14 days.


To learn more about this amendment, NACM's eNews broke down the changes Sept. 20, and a followup piece will run Sept. 27, explaining the amendment further.


—Christie Citranglo, editorial associate

For the latest construction credit news, visit NACM's Secured Transaction Services.

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Wednesday, 24 July 2019